20-Apr-2018

The
Turkish economy grew 7.4% in 2017, making it the fastest growing of all G20
economies, according to data released by the Turkish Statistical Institute
(TurkStat). In comparison, the UK’s GDP growth rate for 2017 sat at 1.7%.

This
rate of growth is more than double the 3.6% growth achieved in 2016, while also
surpassing analyst predictions of 7%, and far exceeding the 5.5% target for
2017 in the Turkish government’s medium-term program. This further highlights
Turkey’s economy as stable, robust and absolutely booming following rapid and
positive acceleration in growth to overcome the instability caused by the
geopolitical turmoil.

According
to the TurkStat statistics, when the activities which constitute GDP were
analyzed, the value added by Turkey’s core sectors increased by (compared to
the previous year):

•
4.7% in the agricultural sector•
9.2% in the industrial sector•
8.9% in the construction sector•
10.7% in the services sector (wholesale and retail trade, transport, storage,
accommodation and food service activities)

The
reasons for this growth can be primarily attributed to increased government
expenditure on investment and infrastructure projects, a robust domestic demand
(Turkey experienced a 6.1% increase in final consumption expenditures of
households in 2017), and a significant boom in foreign trade deals – with
Turkish exports increasing by 10.6% year on year in 2017.

Mehmet
Büyükekşi, chairman of the Turkish Exporters Assembly (TIM) underlines the
confidence he’s had in the Turkish economy for the last 12 months, and the
crucial role of Turkish exporters in this growth.

Mehmet
said:

“At
the beginning of 2017, we suggested that Turkey had overcome the political and
economic troubles of 2016, and that 2017 would be a “Year of Breakthrough” for
the economy. This latest news proves our predictions entirely accurate, and the
role of foreign trade and Turkish exports in this success can’t be
underestimated, with a 10.2% increase in exports in 2017 accounting for 0.15
points of the 7.4% growth rate.

“With
our 71 thousand exporters providing Turkish products and services to 237
countries and regions, and Turkey's share in world exports reaching 0.89%, it’s
safe to say Turkey is becoming a major player in the international arena
despite the geopolitical turmoil in the surrounding region. We believe that,
with the efforts of our exporters and the support of our Government, our future
growth figures will also display a similar performance. 2018 will be a year of
records in export figures and our economy will continue to perform above the
world average, as it did in 2017.”